This article examines real wage-earning, productivity and earning inequality in Indonesia, focusing on differentials among provinces and economic sectors. The post-1997 Asian crisis and democratic Indonesia mimic the global trend of disconnection between wages and productivity: labour productivity continues to rise while real wage-earning stagnates or declines. This disconnection has three consequences. First, it affects income or earning distribution as confirmed by rising overall earnings inequality. Second, while it explains the conventional wisdom of an economy-wide negative relationship between real wages and employment, it is of concern that these two variables do not move in the same direction as the productivity improvements that have occurred in large and medium establishments in the manufacturing sector. Third, the disconnection between productivity and earnings growth opens a new discussion on the broader issue of quality of growth, as the data show that robust economic growth in the post-crisis Indonesia has not been accompanied by parallel improvements in the quality of employment.

In this article, we examine the effect of workforce ageing on company productivity, using an analysis based on Korean firms. We found that an increase in the ratio of workers aged over 50 years to total workers had a negative effect on value added per worker, which was consistent with the findings of most previous studies based on European data. However, the results of the analysis, including various classifications such as size, industry and several financial conditions, revealed that an increase in the ratio of older workers had positive effects on value added per worker in large manufacturing firms under risky or growing conditions. As the productivity of older workers may vary, future research may determine under what conditions – size, industry, region and financial conditions – older workers contribute positively to productivity. Firms with financial troubles or those planning to downsize should be cautious about laying off older workers as an approach to improving organisational performance because these workers contribute positively to productivity under certain conditions.

This article proposes an account of how two teachers’ labour federations have been reacting to austerity measures in public education. Current austerity measures have coincided with the renewal of collective agreements, thus allowing the study of how unions link bargaining stances to wider issues of service quality and accessibility. Union responses are the result of at least three influences: the institutional framework for public sector collective bargaining and worker representation, the previous orientation of members and their organisations towards social and work relations, and ongoing innovations for renewal and member engagement. We posit that union responses can contribute to renewal if they are guided by concerns to redefine union purpose, union organisation and building capacities. Under these conditions, unions are able to engage members and push forward an alternative agenda to that of the government. In doing so, they may be able to forge temporary alliances with outside stakeholders, namely parents. Analysis of union responses should consider the dialectic between union renewal effort and the opportunities and constraints of the institutional framework for public sector collective bargaining. The challenge for these two labour federations is in sustaining member engagement and activism beyond the current context of collective bargaining.

This paper examines the cyclical properties of gross flows and transition rates between the alternative labour market states of ‘employed’, ‘unemployed’, and ‘not in labour force’ for Australian workers for the period 1980–1992. The study is based on ABS monthly gross flow data, disaggregated by gender, and with the employment status disaggregated into part-time and full-time work. The principal finding is that the somewhat surprising pattern, of counter-cyclical monthly flows from unemployment to employment, is primarily the result of counter-cyclical male transitions to full time employment. The results are compared with those from European empirical studies. The paper also considers the consistency of the results with thé implications of theoretical models which emphasise the counter-cyclical ‘quality’ of the unemployment pool.

A return to discretionary fiscal policy is required in the current economic crisis. Advocacy of deficit spending is consistent with mainstream economic models, whether those relying on traditional textbook analysis or those aligned with the New Neoclassical Synthesis. The notion that deficit budgets are necessarily profligate rests on an outdated theory of public finance that ignores endogenous money. It is the productive capacity of the economy and not the government's extent of taxing its citizens, or borrowing from them, that provides the limit to the use of fiscal policy levers.

Vocational rehabilitation of injured workers to facilitate their early return to work is now an established feature of workers’ compensation arrangements in Australia. Critical to the return to work process is the provision by employers of suitable employment for workers following work related injury wherever this is reasonably practicable. This article emphasises the importance of employment security measures within the workers’ compensation arena for both injured workers and the control of scheme costs. It highlights the precarious nature of employment security measures in Australian workers’ compensation schemes due largely to the lack of enforcement, and the concomitant need for legislative and administrative reform. In doing so a number of specific reform proposals are put forward for discussion. In addition the nexus between employment security measures and the operation of the labour market is briefly considered.

This article discusses the concept of the skill ecosystem in the context of the network oriented literature on learning and skill acquisition. Three critical features of skill ecosystems are identified and then applied to an analysis of the abattoir sector of the Australian meat processing industry. The analysis highlights the important role of the employee union in the skill ecosystem, including maintaining a flow of new entrants into the sector. The article then examines the impact of major institutional change, through the deregulation of industrial relations, on the ecosystem. It concludes by discussing the applicability of the skill ecosystem concept to a mature, low-skill industry such as meat processing and then draws some conclusions about the limitations of the skill ecosystem concept itself.

The 2013 and 2014 announcements by major car manufacturers that they would wind down all their remaining Australian automotive operations by 2016/2017 pre-empted the March 2014 release of the Productivity Commission’s final report into motor vehicle manufacturing. The Commission suggested that government subsidies had only delayed car plant closures and reiterated its longstanding opposition to industry policy and redistributive regional adjustment programmes by government. Industrialists, employer associations, state governments and trade unions have, however, questioned the Commission’s forecasts for both economic spillover effects and social impacts in regions affected by automotive plant closures. In addition to challenging several underlying assumptions used to calculate the Productivity Commission’s forecasts, this article argues that insufficient attention has been paid to the quality of future work. It extends insights from previous studies of industrial decline by proposing a new research agenda based on the idea of ‘social spillovers’.

This article addresses three main issues: the relationship between commute time and sickness absence, the heterogeneity of the commuting–absenteeism effect between rural migrants and urban citizens, and the effect of China’s Hukou system on the commuting–absenteeism effect. It applies a unique set of employer–employee matched data in China and a zero-inflated negative binomial model. We find clear evidence that a longer commuting time contributes to an increase in sickness absence. The heterogeneity of the commuting–absenteeism effect can also be confirmed: longer commuting leads to higher absence rates for urban citizens but not for rural migrants. Furthermore, we explore the effect of commuting on a set of health-related outcomes. The estimations demonstrate that commuting time has a significant impact on health-related outcomes for both migrants and urban citizens, but unequal access to housing provision and to social health insurance in the Hukou system may mean that rural migrants resort to more informal medical services and thus lack access to the official sickness certificate required to seek legal sickness absence. We recommend accelerated reform of the Hukou system to encourage rural workers to seek appropriate and timely medical services, thereby reducing public health risks.

The model of social dialogue within organisations between management and employees is facing unprecedented challenges, and changing rapidly. In this new context of labour relations, experiences and expectations of each other are key drivers for the primary parties to this social dialogue. There has been little systematic research investigating the conditions for constructive social dialogue, particularly when it comes to ‘soft factors’, such as perceived competences, trust, influence and conflict behaviours. Addressing these issues based on theories of conflict, trust and influence, this article investigates experiences and expectations of employee representatives on the part of human resource managers, their counterparts in social dialogue. The results of surveys conducted in 11 European countries indicate that, overall, employers found a model of structured dialogue with elected employee representatives useful. Furthermore, competences of employee representatives, cooperative conflict behaviours, informal relations and trust promoted the influence of employee representatives on organisational decision-making and the quality of these decisions. We discuss implications for different systems of industrial relations.

Capitalism has had many crises and often they have led to improvements in the way it has operated. Two related improvements are predicted as a result of the current crisis. One is the hastening of the decisive defeat of market liberalism. The other is the rehabilitation of fiscal policy as part of the tool kit used to minimise the inherent instability of capitalist economies. After a brief exposition of the core aspects of market liberalism, this article considers the use of fiscal policy in each of the short run and the long run. Policies around the OECD in the last 16 months have already embodied both these improvements, but a similar achievement in the long run will be more difficult. The crowding-out thesis has more appeal when applied to the longer run. However, the empirical evidence does not support crowding out. More generally, economic orthodoxy relies on neo-classical growth theory to support a belief that longer run trends in real economic variables such as output and employment are determined solely by supply side factors. The article uses the authority of Solow and Swan to emphasise that this is an assumption, not the result of any analysis, and that neoclassical growth theory itself assumes that fluctuations in investment over the business cycle will necessarily affect the path of potential output. Moreover, not only is the NAIRU (Non-Accelerating Inflation Rate of Unemployment) determined by the path of investment in physical and human capital, but at a much lower level of unemployment than the conventional wisdom believes.

Vocational education and training (VET) and industrial relations systems are inherently linked. The Federal Government aims to increase the number of workers with VET qualifications but it is unclear how this policy is being supported through the industrial relations framework, in particular by the new system of modern awards. Research into training outcomes has shown that job-related factors are linked to completion rates among apprentices and trainees. An analysis of a cross-section of relevant modern awards reveals that award modernisation has had a small negative impact on the wage arrangements for apprenticeships. Modern awards continue to provide no recognition for some categories of workers who have undertaken VET qualifications through traineeships.

The following is an edited version of a conversation between Jane Gleeson-White and Geoff Harcourt about Jane’s book, Double Entry. This conversation was part of UNSWriting and presented at Io Myers Studio by the Creative Practice and Research Unit in the School of the Arts and Media, Faculty of Arts and Social Sciences, UNSW. UNSWriting brings together writers, academics, and students of writing to facilitate the flow of ideas in and around the city, the country and internationally. The conversation was broadcast by the ABC as part of their Big Ideas program. Emeritus Geoffrey Harcourt is Visiting Professorial Fellow in the Australian School of Business, UNSW, Emeritus Reader in the History of Economic Theory, Cambridge University, Emeritus Fellow, Jesus College, Cambridge, and a leading post-Keynesian scholar.

This paper investigates two related matters. First, what proportion of the population is represented by the matched sample (i.e. by the gross flows data) in the Labour Force Survey, why is this proportion what it is and why does it vary over time? Second, given that around 20% of the population are not represented in the matched sample, how representative are labour market indices derived from the matched sample data and, if biases are present, what is the source and what are the implications of the bias?

Japan is experiencing a rapid ageing of its population with a subsequent strain on its social security pensions. Despite periodic reforms over recent decades and comprehensive reforms in 2004, many outstanding issues remain. Using the balance sheet approach we show that despite its recent reforms, Japan's social security pensions face substantial excess liabilities. As well, the reforms themselves may have exacerbated the incentive-compatibility problem.

Incorporation of the informal sector in the general Kaleckian framework of agriculture–industry linkage is the primary target of this article. We show that the agriculture–informal sector interaction is distinctly different from the agriculture–formal sector relationship. Although agriculture supports the formal sector only from the supply-side, it helps the informal sector by providing both demand- and supply-side inducements. Next, contrary to the general perception of formal–informal complementarities, we rather propose a fundamental conflict. This conflict arises in the presence of the food supply-constraint or the generic resource-constraint. Subsequently, with these theoretical perspectives, we show that policies that are beneficial for the formal sector, in fact, constrict the informal economy.

New Zealand has a unique approach to retirement income provision. The state pension arrangements have the advantage of being very simple and easy to understand and administer. While there are numerous issues associated with the ageing of the population that may require modification to the parameters of state provision in the future, there is little political disagreement about the basic design of the state pension. In ensuring universal coverage with a flat rate taxable pension for everyone without the need for a contributions record, New Zealand has prevented elderly poverty to date. Supplementary private provision has been unsubsidised and recent debate has focused on the need to encourage more private saving particularly through work-based schemes. Nevertheless there are numerous advantages to New Zealand's tax neutral approach, which may offer lessons to reformers in other countries. With some caveats, New Zealand appears well placed to weather the increased expenditures associated with the retirement of the baby boomers.

Globalisation presents major challenges for governments, and some are now looking to the United Kingdom as an example of how to create global competitiveness, economic efficiency and labour market flexibility in a way that also responds to demands for fairness at work. But what the British approach conceals behind its alluring synthesis of regulation and deregulation is the changing nature of labour law, which is now principally a tool of economic policy, and as such less concerned with its historic mission of promoting social justice. Labour law is thus increasingly concerned principally with the re-commodification of labour, rather than the protection of workers; with promoting the flexibility of labour, rather than the security of citizens; and with controlling rather than encouraging labour organisation as an instrument of industrial democracy (a term about which little is now heard).

Tony Atkinson’s death at the beginning of 2017 deprived economics of one of its leading contributors to research on public economics, inequality, poverty and the welfare state. This article focuses on his last official role, as Chair of the World Bank Commission on Global Poverty. The report of the Commission – already referred to as the Atkinson Commission – proposes a new approach to measuring and monitoring the global poverty reduction targets established as part of the Sustainable Development Goals agreed by the United Nations in 2015. Atkinson developed the framework and provided the academic impetus to the work of the Commission and wrote much of its report, assisted by comments provided by an Advisory Board of eminent experts in the field and a smaller working group of selected members. The article describes some of the main features of the report’s 21 recommendations, focusing on the measurement of poverty in both monetary and non-monetary dimensions and its attempt to draw together national and global efforts to measure and reduce poverty in all its forms. It concludes with a discussion of the implications of the new approach for Australia, which like many other developed countries has so far failed to engage actively with the debate over addressing extreme global poverty.

The pros and cons of part-time work have attracted considerable attention in recent years, not least because of its presumed potential to enable employees to reconcile paid work and family needs. This article focuses on job-sharing, which is a unique yet underexplored form of part-time work and one which has rarely been analysed in terms of the consequences for all stakeholders. This case study of job-sharing details its positive outcomes for some employees, in assisting them to balance career and family. The study also highlights some previously unexplored and, we argue, unintended negative consequences of job-sharing. In this case, job-sharing contributed to the increased use of temporary employees who were locked out of many of the benefits of quality flexible work. Furthermore, the case study reveals competing interests between permanent and temporary employees, creating a range of challenges for human resource practitioners in managing and developing both groups.